McDowell finalises GDS, FCCB prices

McDowell and Company, country's largest spirits firm, has fixed the price of the simultaneous offering of its maiden global depository shares (GDS) and foreign currency convertible bonds (FCCBs) on Friday.

Addressing a press conference here on Friday, Ravi Nedungadi, chief finance officer, UB Group said that the GDS offering amounted to $130 million at a price of $7.4274 per GDS. This works out to Rs 660 per share. Two GDSs represent one underlying equity share.

According to Nedungadi, both issues will be utilised towards repaying a portion of the debt incurred to finance the acquisition of Shaw Wallace.

This will go a long way in de-leveraging the company's balance sheet. The funds will also be utilised for strategic initiatives such as acquisitions and for other general corporate purposes, he added.

The GDS is to be listed on the Luxembourg Stock Exchange. CLSA Singapore had acted as the global co-ordinator, bookrunner and lead manager, he added.

The FCCBs amount to $100 million. The bonds have a tenure of five years and one day, carry an interest of 2 per cent per annum payable in arrears semi-annually.

The bonds are convertible into equity shares or GDS where two GDS represent one equity share. The bonds will be listed on the Singapore Exchange Securities Trading Ltd.

For the issue, Citigroup acted as the sole bookrunner and lead manager to the issue. The closing of the offerings are expected to take place next week.

Nedungadi said that the FCCBs were issued at a premium of 30 per cent to the GDR reference price, with a coupon of 2 per cent per annum payable in arrears semi-annually and an yield to maturity (YTM) of 6.65 per cent.

The bonds have a hard no-call period of 18 months after which the mandatory conversion is at the option of the issuer, at a premium of 25 per cent over the accreted conversion price.